How Do I Get a Lien on Abandoned Property I Stored for Repair in My Business?

Full question:

I own a small business in Illinois. Last year I was under contract with a company from Switzerland to store & maintain their products for warranty support of their customers here in North America. In October, they exercised their option to terminate the contract. At that time I informed them that the owed me approximately $5,000.00 (These charges were determined in the original contractual agreement that they authored)for storage, maintenance, and service fees. At this time (January '10)they have failed to satisfy their commitment. I have approximately $80,000.00 of their product & equipment that I continue to store for them. The original contract did provide a definition of storage fees and all rates.I approached their attorney in December (12/14/09)(Who is located in the USA) with a detailed account of the funds requested. I have received no response since, with subsequent inquires to their attorney going unanswered.It is my intention to treat the property the same as would be abandoned property as if left in a strange facility.1) Can I place lien on this property at this time?At their request, the original contract was terminated in October.

• Category: Judgment Liens
• Date: 04/07/2025
• State: Illinois

Answer:

When someone breaches a contract, the injured party may sue for breach of contract and collect money damages in civil court. An out-of-state defendant may be served with the complaint under a state's long-arm statute if the requirements for exercising long arm jurisdiction and due process requirements are met. If the defendant is out of state, due process requires that they must be shown to have contacts in the forum state of such a nature that they could reasonably foresee being sued in that state. Whether minimum contacts exist so that the court has personal jurisdiction over an out-of-state defendant is a determination made based upon the facts and circumstances in each case.

Minimum contacts can be established by consent where a party signs a contract with a forum selection clause, agreeing to litigate in a specified forum. If minimum contacts don't exist, the defendant must be sued in the state where they reside or regularly conduct business.

To create a valid lien, it is essential that the party claiming a lien should have the absolute property or ownership of the thing or, at least, a right to vest it; that the party claiming the lien should have an actual or constructive, possession, with the assent of the party against whom the claim is made; that the lien should arise upon an agreement, express or implied and not be for a limited or specific purpose that contradicts the express terms or the clear, intent of the contract. In certain circumstances, the lien holder may foreclose on the property if the debt is not paid in full. Liens can generally be removed by the payment of the amount owed. This payment can occur at any time up to and including the stage at which the closing documents for the sale of the property are signed.

There are several types of liens, all of which could cloud the title and prevent the seller from conveying marketable title to the buyer. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." If the judgment remains unpaid, the judgment debtor may request that the court place a lien on the judgment debtor's property to secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt.